Here’s an overview on how to get a travel credit card with bad credit. Enjoy!
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How to Get a Travel Credit Card with Bad Credit | Video Transcript:
If you’re like me lately, I have seen so many advertisements for deals on travel. I know with the state of the world, some people it’s on their mind, they’re looking to get away, especially for the holidays or vacations. Other people are still like a little cautious. And one thing I really liked talking about on this channel is how to use credit cards, specifically travel credit cards, to travel for free. We’re talking free flights, free hotels, even rental cars, and sometimes some excursions. However, if your credit score is not so high, then that can all just seem like a pipe dream. And it makes you sometimes just want to like tune out. So today I’m going to share with you a few tips on how you can get approved for a travel credit card. And if not right away in the near future, you’re not going to want to miss this.
So you heard, right? I’ve done multiple videos on this channel, comparing things like the capital one venture card to the chase Sapphire card. And it’s always revolving around getting free travel for me and my family. And when, I mean free travel, there might be a few costs associated with it, but we are spending far less money than you would think. And I wanted to share with you today that the path to getting these travel credit cards may not be as hard as you think, but before we dive in, please hit that little thumbs up button and give this video a like, I really appreciate it. And it helps spread the word on these types of videos. So thanks now, as we dive into the nuts and bolts of how to get some of the best credit cards out there, I need you to ask yourself a few questions and if you don’t like the answers, that’s what we’re going to work on in order to continue down that path, to getting the best cards out there.
The first question sounds kind of simple, but most people are off by more than two to 300%. How much money are you spending every single month on subscriptions? I’ll give you a second to sort of do some mental math, but I’ll give you the answer that studies have shown. Most people would say probably right around $75. You know, you throw the cell phone bill and a few other streaming services in there, but the actual answer is closer to over $240 per month just for subscriptions. Now, Bravo, if you got that answer because even a guy like myself, I’ve got all these things for the, the website business and the YouTube channel that if I added it up, I bet I would be a bit surprised. So my point is knowing how much money you have coming out, going in creating that budget is something that even the strictest of like financial gurus struggle with.
So I wanted to recommend I mentioned the nuts and bolts earlier as using some sort of online software. I like to mint.com personal capital.com is another option. And that can help you track all your spending online that way, you know, the money that you have coming in and going out. It’s also really great when that software tells you how much you owe on a monthly bill. Like for example, if it’s a credit card bill, what’s the minimum you have to pay. What’s the total balance when it’s due and overall, as you get a better snapshot of your like financial health, you’re gonna realize how you can improve and then look better on those credit card applications. My next tip would be to monitor your credit score. You see, as you’re working on improving your credit to get those amazing credit cards, you need to be aware of how you’re spending and saving and improving that credit score because the higher the score, the more likely you are to get approved.
I’m going to put up on the screen right now, that little wheel that you’ve probably seen before, how 35% of your credit score is payment history, meaning you are going to want to pay things on time. And if you’ve missed a payment to try to at least moving forward, make the minimum payments, a 30% is going to be the, the amounts that you owe. And what I mean by the amount that you owe is if you don’t pay your credit cards off in full and on time, then that’s, that’s basically a failing score. You really got to work on those two areas first. And if you can nail those down, you’re at a 65% of that pie already. The other 15% is going to be length of credit history. And many of us can’t control that. You know, when did we open our first card?
When did we get like a car loan? All of that gets factored in there, but I will say that if you have an older line of credit, then please keep those cards active. Maybe put like a five or $10 charge on every single month. It could be a store card. It could be any card really that reports to the credit agencies, because it’s going to keep that card open. That credit history is going to get longer and keep improving. The next one is going to be new credit open. And this is going to be where if you keep applying for those travel cards, the sapphires or the Amex is, and you keep getting denied. Each of those hard credit poles, as you know, kind of dings you, it brings the score down and down. So you want to keep those inquiries as low as possible.
I personally like to keep them right around, you know, four or five or six. I, they take like two years to fall off. So if you have a ton of them, you just went out and tried to get a new car and they pulled your credit every single time. You can do, I’ll get into this in the next step. You can do some things to maybe get some of those hard inquiries removed and then last but not least is simply the types of credit that you have. Think student loans bank loans, personal loans, mortgages, all of those things count. So I just wanted to show you that wheel as a quick reminder, that there are some things that we’re working on, some weigh heavier than others. So if he can do a little bit for that one bigger area, it’s, it’s gonna pay off in the long run.
Now I should have mentioned this before. You can usually get that credit score for free when you sign up for all like almost any credit card, but there’s also a free version of your credit score, credit Sesame. You can log in sort of track it there. I’ll leave a link down below in the description. If you want to check that out now, just previewed this last tip before, but your credit score and your credit report, there are two different things. If your credit report is showing a ton of like hard inquiries, sometimes you go to the car dealer and they, and they pull your credit and then you don’t decide to do a deal. You go to the next one, they do that too. Or maybe you’ve got some like a medical bill. They say, oh, to copay, you already paid it. But for some reason, it got sent to collections.
All of that is hurting your credit score. So I did a whole video on how to improve your credit. And in there I go into detail. Step-By-Step how you can send an email or write a letter and request that, that wrong information get removed. It is so important to check that credit report at least once a year, it’s free to do so. So check out that video. If you’re interested, that’s just one more tip that you can do to help improve your credit on that path, to getting the best cards. Okay. The moment you’ve been waiting for some of the travel cards that I would recommend starting out with, and even if you don’t see these as travel cards, they are going to be for people with no credit limited credit or bad credit. And all of them are going to offer something in the form of rewards or perhaps travel benefits.
And then once you have these for say, three months, six months, and you’re paying them off in full and on time, then you can start to see that credit score, improve to the point to where you can apply for some of the other cards that I’ve mentioned in some of my other videos, the first card I’m going to talk about. I have talked about it in the past, and it is the pedal one or pedal two card. Both of these cards are super unique because they are for people with essentially no credit or bad credit. And depending on which card is right for you during the application process, they’ll either give you pedal one or pedal two, and there are no annual fees. And there are actually cash back for select merchants. And the rates of those vary from one all the way up to 10%.
But this is a excellent card for someone with bad to no credit up next is going to be the secured MasterCard from capital one. I don’t always love capital one types of cards, but this one is going to be helpful on your credit journey. It works where you put down a set amount of money, you actually give them, let’s say 200, $500, and then that is your credit limit. So if you know that you are going to be putting a specific amount of purchases on there every single month, then you could put them on the card pay them off and then start to build that positive credit history. This does offer some travel benefits like in the form of no foreign transaction fees. However, this is going to be the type of card you do want to move on from, I wouldn’t say necessarily close, but you might want to look ahead to some other products.
Once you sort of kind of get your footing and start to improve that credit score. And the third card I want to mention sticking with capital one is their Quicksilver cash rewards card. This is an excellent card for somebody who is moving towards those more elite cards you can apply for it and actually get as of this recording a $200 cash bonus just for signing up. It also offers 1.5% cash back on all your purchases. And usually it has a 0% APR on new purchases. The timing of that might change. So, so check to make sure. And of course there’s no annual fee, a couple of key takeaways. It can be disheartening if you are looking to apply for some of the more elite travel cards, and you’re seeing pictures or seeing advertisements of people traveling for free free lounge access, free hotels.
But if your credit score is something that you need to work on and improve, then you should be able to do that by taking advantage of some of the tips and tricks that I’ve mentioned in today’s video. Likewise, I’ve named a few cards that during the interim you could apply for and reap the benefits along with building a positive credit history, as you see that credit score rise, you know, and can feel confident that when you get to that 707 20 range, that you should be able to apply for those a more elite travel cards and hopefully get applied with no questions asked. So please head to my website. I, it is full of the blog posts that I mentioned before and a ton of other resources on credit card points, rewards, and how to improve your credit score. Likewise, if you’re interested in any of the cards that I mentioned during today’s video, I’ll leave a link down below in the description using those links really helps out me and the channel. So please use them if you’re interested in one of those cards. And of course, if you are new to the show, please don’t forget to hit subscribe and ring that notification bell. All right, as always I’m Rich and until next time.